Made | 25th March 2005 | ||
Coming into operation in accordance with regulation 1(2) |
1. | Citation, commencement and application |
2. | Interpretation |
3. | Schemes to which Article 73 of the 1995 Order does not apply |
4. | Corresponding PPF liability: modifications of the pension compensation provisions, etc. |
5. | Early leaver's rights: deemed election for contribution refund |
6. | Adjustments to discretionary awards |
7. | Adjustments to survivors' benefits |
8. | Entitlement to death benefits treated as arising before commencement of winding up period |
9. | Calculation of the value or amount of scheme assets and liabilities |
10. | Discharge of liabilities during assessment period |
11. | Requirements to be met where liabilities discharged on winding up |
12. | Commencement of winding up |
13. | Multi-employer sectionalised schemes, schemes with partial government guarantee and partly foreign schemes |
14. | Consequential amendments |
15. | Amendment of the Occupational Pension Schemes (Transfer Values) Regulations |
16. | Amendment of the Pension Sharing (Valuation) Regulations |
17. | Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations |
18. | Amendment of the Pension Sharing (Pension Credit Benefit) Regulations |
SCHEDULE - | Consequential amendments |
Interpretation
2.
- (1) In these Regulations -
(2) In these Regulations "scheme" must be read in appropriate cases in accordance with the modifications of Articles 73 to 74 of the 1995 Order made by regulation 13 (multi-employer sectionalised schemes, schemes with partial government guarantee and partly foreign schemes) and "employer" and "member" must be read accordingly.
(3) Subject to paragraphs (1) and (2) and regulation 12 (commencement of winding up), expressions used in these Regulations have the same meaning as in Article 121 of the 1995 Order.
(4) The Interpretation Act (Northern Ireland) 1954[10] shall apply to these Regulations as it applies to an Act of the Assembly.
(g) a scheme -
(h) a scheme with such a superannuation fund as is mentioned in section 615(6) of the Taxes Act 1988[15] (exemption from tax in respect of certain pensions);
(i) a scheme with fewer than two members;
(j) a scheme with fewer than twelve members where all the members are trustees of the scheme and either -
(k) a scheme with fewer than twelve members where all the members are directors of a company which is the sole trustee of the scheme and either -
(l) the scheme established by the Salvation Army Act 1963[17].
(2) Before 6th April 2006 sub-paragraph (e) of paragraph (1) applies as if at the end there were added "and is not a relevant statutory scheme providing relevant benefits"; and for the purposes of that sub-paragraph "relevant statutory scheme" and "relevant benefits"[18] have the same meaning as in Chapter 1 of Part 14 of the Taxes Act 1988 (see sections 611A and 612(1) of that Act[19]).
Corresponding PPF liability: modifications of the pension compensation provisions, etc.
4.
- (1) For the purposes of Article 73 of the 1995 Order, when determining the corresponding PPF liability in relation to any liability of a scheme to or in respect of a member for pensions or other benefits, the pension compensation provisions apply as if -
(d) no determination might be made under paragraph 29 of Schedule 6 (Board's powers to alter rates of revaluation and indexation) after the time as at which the corresponding PPF liability is determined for the purposes of Article 73 of the 1995 Order;
(e) no order might be made under paragraph 30 of that Schedule (Department's powers to vary percentage paid as compensation) after that time;
(f) the Pension Protection Fund (Compensation) Regulations (Northern Ireland) 2005[21] applied with the modifications specified in paragraph (3); and
(g) (so far as they are included in the pension compensation provisions) the Pension Protection Fund (Hybrid Schemes) (Modification) Regulations (Northern Ireland) 2005[22] applied with the substitution for the reference in regulation 3(2) of those Regulations to the assessment date of a reference to the winding up date.
(2) The omissions are -
(3) The modifications are -
(4) In this regulation -
(5) In the case of any scheme in relation to which there is no assessment period during the winding up period, Article 73(4)(b) of the 1995 Order applies as if the words from "to the extent" to "the corresponding PPF liability" were omitted.
Early leaver's rights: deemed election for contribution refund
5.
Where, on the commencement of the winding up period, a member becomes a person to whom Chapter 5 of Part IV of the Pension Schemes Act[26] (early leavers: cash transfer sums and contribution refunds) applies, that Chapter applies as if -
Adjustments to discretionary awards
6.
- (1) For the purposes of Article 73A of the 1995 Order[27] (operation of scheme during winding up period) and this regulation, "discretionary award", in relation to an occupational pension scheme, means an award of a pension or other benefit under the scheme where either -
(2) Where Article 73A of the 1995 Order applies, the circumstances in which trustees or managers of the scheme are required to adjust any such entitlement as is referred to in Article 73A(7)(a) are where -
(b) it appears to the trustees or managers that as a result of -
the total amount of the liability for pensions and other benefits in respect of the member is greater than it was immediately before the commencement of the winding up period.
(3) In those circumstances, the trustees or managers are required to adjust the entitlement -
in such manner as they think fit so that the total amount of that liability does not exceed its amount immediately before the commencement of the winding up period.
(4) If -
the adjustment must be made with effect from the time the award takes effect.
(5) Where a discretionary award takes effect during a period that is a winding up period or an assessment period in relation to a scheme, the trustees or managers of the scheme must give the person to whom the award is made notice in writing not later than one month after the date on which the award is made -
(6) Such a notice may be given by post and, if the person to whom it is given is not in employment to which the scheme relates, is to be treated as having been given if it is sent to him by post to his last address known to the trustees or managers.
Adjustments to survivors' benefits
7.
- (1) Where Article 73A of the 1995 Order applies, the circumstances in which trustees or managers of the scheme are required to adjust any such entitlement as is referred to in Article 73A(7)(b) are where -
the amount of the total liability for pensions and other benefits in respect of the member is greater than it was immediately before the commencement of the winding up period; or
(b) regulation 6(3) requires the trustees or managers to adjust the entitlement.
(2) In the circumstances mentioned in paragraph (1)(a), the trustees or managers are required to adjust the entitlement or entitlements in such manner as they think fit so that the total amount of the liability for pensions and other benefits in respect of the member does not exceed its amount immediately before the commencement of the winding up period.
(3) See regulation 6(3) for the manner in which the trustees or managers are required to adjust the entitlement or entitlements where that regulation applies.
(4) If -
the adjustment must be made with effect from the time the award takes effect.
(5) Where any such entitlement of a person as is referred to in Article 73A(7)(b) of the 1995 Order arises during a period that is a winding up period or an assessment period in relation to a scheme, the trustees or managers of the scheme must give the person notice in writing not later than one month after the date on which it arises -
(6) Such a notice may be given by post and is to be treated as having been given to the person if it is sent to him by post to his last address known to the trustees or managers.
Entitlement to death benefits treated as arising before commencement of winding up period
8.
- (1) This regulation applies where -
(2) The benefits are -
(3) For the purposes of Article 73B(6)(a) of the 1995 Order[28] (liabilities to which the winding up provisions do not apply) -
are to be treated as having arisen immediately before the commencement of the winding up period.
(4) In the case of a scheme which begins to be wound up before 6th April 2006, this regulation has effect as if the benefits referred to in paragraph (2) were -
Calculation of the value or amount of scheme assets and liabilities
9.
For regulation 4 of the Winding Up Regulations[29] (calculation of amounts of liabilities) there shall be substituted the following regulation -
(2) For the purpose of paragraph (1)(b) the actuary must estimate the cost of purchasing the annuities.
(3) A calculation of the value or amount of the liabilities of a scheme for the purposes of Article 73 must be accompanied by a statement that it is in accordance with the guidance mentioned in paragraph (1)(d).
(4) For the purposes of this regulation, regulations 7 and 8 of the MFR Regulations shall be modified as follows -
(5) Paragraph (6) applies if, when the assets of the scheme are applied in accordance with Article 73(3) towards satisfying any liability of the scheme mentioned in Article 73(4), that liability, as calculated in accordance with the rules of the scheme (without any reduction by reason of its falling within a class of liability which is to be satisfied after another class), is in the opinion of the actuary fully satisfied by applying assets of a value less than the amount of that liability calculated in accordance with paragraph (1).
(6) If this paragraph applies the amount to be taken as the amount of that liability for the purposes of Article 73(3) is to be reduced accordingly.
(7) Paragraph (8) applies if, when the assets of the scheme are so applied, the liabilities mentioned in Article 73(3), as calculated in accordance with the rules of the scheme (without any reduction by reason of their falling within a class of liability which is to be satisfied after another class), cannot in the opinion of the actuary be fully satisfied by applying assets of a value equal to the amount of those liabilities calculated in accordance with paragraph (1).
(8) If this paragraph applies the amount to be taken as the amount of those liabilities for the purposes of Article 73(3) is to be increased accordingly.
(9) If Article 73 does not apply to any liability by virtue of -
the value of any corresponding assets is to be deducted from the value of the assets of the scheme for the purposes of Article 73.
(10) For the purposes of paragraph (9), "the value of any corresponding assets" means -
(11) Subject to paragraph (12), in this regulation "the crystallisation date" means -
the date when that time occurs; and
(b) otherwise, the date on which the scheme begins to be wound up.
(12) Where the trustees or managers of a scheme -
the date when that time occurs is the crystallisation date.".
Discharge of liabilities during assessment period
10.
- (1) This regulation applies in any case where any liability of a scheme in respect of a member has been discharged by virtue of regulations under Article 119(4) of the 2005 Order (power to make regulations permitting discharge of scheme's liabilities during an assessment period).
(2) Articles 73 to 73B of the 1995 Order (except Article 73B(4)(b)(iii)) apply as if references to liabilities did not include the discharged liability.
(3) Article 74(2) and (4) of the 1995 Order[34] applies as if the trustees or managers of the scheme had -
Requirements to be met where liabilities discharged on winding up
11.
In regulation 8 of the Winding Up Regulations (requirements to be satisfied by transferee schemes, annuities, etc.) after paragraph (5) there shall be added -
(7) In this regulation "trivial commutation restriction" means a restriction imposed by -
(8) Before 6th April 2006 this regulation applies with the modification in paragraph (9).
(9) For paragraph (6)(b)(i) substitute -
(10) For the purposes of this regulation a payment does not contravene Revenue restrictions if -
Commencement of winding up
12.
- (1) Regulation 11 of the Occupational Pension Schemes (Winding Up Notices and Reports etc.) Regulations (Northern Ireland) 2002[39] (time when winding up taken to begin) does not apply in any case where in accordance with Article 121(4) to (8) of the 1995 Order a scheme begins to wind up on or after 6th April 2005.
(2) Accordingly, in such a case -
(b) regulation 2 of those Regulations does not apply.
(3) If immediately before 6th April 2005 a scheme was regarded as having begun to be wound up for any purpose by virtue of regulation 2 of the Winding Up Regulations (commencement of winding up), paragraphs (1) and (2) do not affect the time when it is to be taken as having begun to be wound up for that purpose.
Multi-employer sectionalised schemes, schemes with partial government guarantee and partly foreign schemes
13.
In any case where, by virtue of regulation 12, 12A or 12B of the Winding Up Regulations[40] (winding up of sectionalised schemes, schemes with partial government guarantee and partly foreign schemes), Articles 73 to 74 of the 1995 Order apply to a scheme as if different parts of the scheme were separate schemes, these Regulations (apart from this regulation) also so apply.
Consequential amendments
14.
The Winding Up Regulations have effect with the amendments specified in Part 1 of the Schedule, and the Regulations specified in Part 2 of the Schedule have effect with the amendments specified in that Part.
(4B) If the GN 11 insufficiency conditions are met then, subject to paragraph (4D), the trustees may reduce any part of the member's cash equivalent that is payable in respect of such a category of liabilities as are mentioned in paragraph (4A)(b) by a percentage not exceeding the GN 11 deficiency percentage.
(4C) The GN 11 deficiency percentage for any such part of a member's cash equivalent is the percentage by which the actuary's last relevant GN 11 report shows that the assets were insufficient to pay that category of liabilities.
(4D) The total reduction made in a member's cash equivalent under paragraph (4) must not reduce the member's cash equivalent below the MFR basis minimum for the member.
(4E) Subject to paragraph (4F), for the purposes of this regulation, the MFR basis minimum for the member is the minimum amount required in accordance with regulation 7(3)(b)(iv) to pay in full the liabilities for the benefits in respect of which the member's cash equivalent is being calculated.
(4F) If the GN 11 insufficiency conditions and the MFR insufficiency conditions are both met, the MFR basis minimum for the member for the purposes of paragraph (4D) may be reduced by the trustees of the scheme in accordance with paragraph (4H).
(4G) The MFR insufficiency conditions are that the last relevant MFR valuation statement (see paragraph (4K)) shows that at the effective date of the valuation -
(4H) The reduction that may be made under paragraph (4F) is that any part of the MFR basis minimum for the member that relates to that category of liabilities may be reduced by a percentage not exceeding the MFR deficiency percentage.
(4I) The MFR deficiency percentage for any such part of the MFR basis minimum for the member is the percentage by which the last relevant MFR valuation statement shows that the assets were insufficient to pay that category of liabilities.
(4J) The references in this regulation to the actuary's last relevant GN 11 report are to his last report before the guarantee date in accordance with "Retirement Benefit Schemes - Transfer Values (GN 11)"[44] published by the Faculty of Actuaries and the Institute of Actuaries and current at the guarantee date.
(4K) The references in this regulation to the last relevant MFR valuation statement are to the statement made by the actuary in accordance with Schedule 1 to the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations (Northern Ireland) 1996[45] (minimum funding valuation statements) and contained in the last actuarial valuation under Article 57 (valuation and certification of assets and liabilities) before the guarantee date.
(4L) If the last relevant MFR valuation statement refers to an order for applying assets determined under Article 73 that is an order modified by regulations made under that Article, then the reduction under paragraph (4F) is to be made by reference to the order as so modified.".
(4) In regulation 8(5) for "paragraph (4)", "the reference" and "a reference" there shall be substituted "paragraphs (4), (4A) and (4G)", "the references" and "references" respectively.
(5) In regulation 8(12) for "Article 73 and regulations made under that Article" there shall be substituted "the winding up provisions (as defined in Article 73B(10)(a)) and regulations made under those provisions".
(6) In regulation 8(13) for "under Article 73, that Article applies" there shall be substituted "under Article 73B(4)(b)(i) by virtue of Article 73B(5), the winding up provisions (as so defined) apply".
(7) In regulation 9(3) (increases and reductions of guaranteed cash equivalents) for "Article 73 and regulations made under that Article" there shall be substituted "the winding up provisions (as defined in Article 73B(10)(a)) and regulations made under those provisions".
(8) In regulation 9(4) for "under Article 73, that Article applies" there shall be substituted "under Article 73B(4)(b)(i) by virtue of Article 73B(5), the winding up provisions (as so defined) apply".
(9) Paragraphs (2) to (4) only apply to the calculation of cash equivalents where the guarantee date is on or after 6th April 2005 and the scheme has not begun to be wound up before that date.
(10) In paragraph (9) "the guarantee date" has the meaning given by section 89A(2) of the Pension Schemes Act[46] (salary-related schemes: right to statement of entitlement).
(11) Paragraphs (5) to (8) only apply where the scheme begins to be wound up on or after 6th April 2005.
(3B) If the GN 11 insufficiency conditions are met then, subject to paragraph (3D), the trustees or managers may reduce any part of the cash equivalent that relates to such a category of liabilities as are mentioned in paragraph (3A)(b) by a percentage not exceeding the GN 11 deficiency percentage.
(3C) The GN 11 deficiency percentage for any such part of the cash equivalent is the percentage by which the actuary's last relevant GN 11 report shows that the assets were insufficient to pay that category of liabilities.
(3D) The total reduction made in the cash equivalent under paragraph (3) must not reduce the cash equivalent below the MFR basis minimum for the transferor.
(3E) Subject to paragraph (3F), for the purposes of this regulation, the MFR basis minimum for the transferor is the minimum amount required in accordance with regulation 4(3)(b)(iii) to pay in full the liabilities for the benefits in respect of which the cash equivalent is being calculated.
(3F) If the GN 11 insufficiency conditions and the MFR insufficiency conditions are both met, the MFR basis minimum for the transferor for the purposes of paragraph (3D) may be reduced by the trustees or managers in accordance with paragraph (3H).
(3G) The MFR insufficiency conditions are that the last relevant MFR valuation statement (see paragraph (3K)) shows that at the effective date of the valuation -
(3H) The reduction that may be made under paragraph (3F) is that any part of the MFR basis minimum for the transferor that relates to that category of liabilities may be reduced by a percentage not exceeding the MFR deficiency percentage.
(3I) The MFR deficiency percentage for any such part of the MFR basis minimum for the transferor is the percentage by which the last relevant MFR valuation statement shows that the assets were insufficient to pay that category of liabilities.
(3J) The references in this regulation to the actuary's last relevant GN 11 report are to his last report before the valuation day in accordance with "Retirement Benefit Schemes - Transfer Values (GN 11)" published by the Faculty of Actuaries and the Institute of Actuaries and current at the valuation day.
(3K) The references in this regulation to the last relevant MFR valuation statement are to the statement made by the actuary in accordance with Schedule 1 to the Minimum Funding Requirement Regulations (minimum funding valuation statements) and contained in the last actuarial valuation under Article 57 (valuation and certification of assets and liabilities) before the valuation day.
(3L) If the last relevant MFR valuation statement refers to an order for applying assets determined under Article 73 that is an order modified by regulations made under that Article, then the reduction under paragraph (3F) is to be made by reference to the order as so modified.".
(4) In regulation 5(4) for "paragraph (3)", "the reference" and "a reference" there shall be substituted "paragraphs (3), (3A) and (3G)", "the references" and "references" respectively.
(5) In regulation 5(5)[49] for "paragraph (3)" there shall be substituted "paragraphs (3) and (3F)".
(6) In regulation 5(6) for the words from "Articles 73" to the end there shall be substituted "the winding up provisions (as defined in Article 73B(10)(a)) and regulations made under those provisions".
(7) In regulation 5(7) for "the Winding Up Regulations, Article 73 applies" there shall be substituted "regulations made under Article 73B(4)(b)(i) by virtue of Article 73B(5), the winding up provisions (as so defined) apply".
(8) Paragraphs (2) to (5) only apply if the relevant proceedings commenced on or after 6th April 2005 and the scheme has not begun to be wound up before that date.
(9) In paragraph (8) "the relevant proceedings" means the proceedings for the dissolution or annulment of marriage in connection with which the relevant order or provision was made and in this paragraph "the relevant order or provision" means the order or provision mentioned in Article 25(1) of the 1999 Order (activation of pension sharing) for the purposes of which the valuation is made.
(10) Paragraphs (6) and (7) only apply where the scheme begins to be wound up on or after 6th April 2005.
Amendment of the Pension Sharing (Implementation and Discharge of Liability) Regulations
17.
- (1) The Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000[50] shall be amended in accordance with paragraphs (2) and (3).
(2) In regulation 16 (adjustments to amount of pension credit: occupational pension schemes which are underfunded on the valuation day) for paragraphs (2) to (2B)[51] there shall be substituted the following paragraphs -
(2B) If the GN 11 insufficiency conditions are met then, subject to paragraph (2D), the trustees or managers may reduce any part of the pension credit that relates to benefits the liabilities for which fall within such a category as is mentioned in paragraph (2A)(b) by a percentage not exceeding the GN 11 deficiency percentage.
(2C) The GN 11 deficiency percentage for any such part of the pension credit is the percentage by which the actuary's last relevant GN 11 report shows that the assets were insufficient to pay the category of liabilities into which the liabilities for those benefits falls.
(2D) The total reduction made in a pension credit under paragraph (2) must not reduce the cash equivalent in respect of the pension credit below the MFR basis minimum for the person entitled to the credit.
(2E) Subject to paragraph (2F), for the purposes of this regulation, the MFR basis minimum for such a person is the minimum amount required in accordance with regulation 4(3)(b)(iii) of the Pension Sharing (Valuation) Regulations (Northern Ireland) 2000 to pay in full the liabilities for the benefits in respect of which the cash equivalent is being calculated.
(2F) If the GN 11 insufficiency conditions and the MFR insufficiency conditions are both met, the MFR basis minimum for the person for the purposes of paragraph (2D) may be reduced in accordance with paragraph (2H).
(2G) The MFR insufficiency conditions are that the last relevant MFR valuation statement (see paragraph (2K)) shows that at the effective date of the valuation -
(2H) The reduction that may be made under paragraph (2F) is that any part of the MFR basis minimum for the person that relates to that category of liabilities may be reduced by a percentage not exceeding the MFR deficiency percentage.
(2I) The MFR deficiency percentage for any such part of the MFR basis minimum for the person is the percentage by which the last relevant MFR valuation statement shows that the assets were insufficient to pay that category of liabilities.
(2J) The references in this regulation to the actuary's last relevant GN 11 report are to his last report before the valuation day in accordance with "Retirement Benefit Schemes - Transfer Values (GN 11)" published by the Faculty of Actuaries and the Institute of Actuaries and current at the valuation day.
(2K) The references in this regulation to the last relevant MFR valuation statement are to the statement made by the actuary in accordance with Schedule 1 to the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations (Northern Ireland) 1996 (minimum funding valuation statements) and contained in the last actuarial valuation under Article 57 of the 1995 Order (valuation and certification of assets and liabilities) before the valuation day.
(2L) If the last relevant MFR valuation statement refers to an order for applying assets determined under Article 73 of the 1995 Order that is an order modified by regulations made under that Article, then the reduction under paragraph (2F) is to be made by reference to the order as so modified.".
(3) In regulation 16(3) for "paragraph (2)", "the reference" and "a reference" there shall be substituted "paragraphs (2), (2A) and (2G)", "the references" and "references" respectively.
(4) This regulation only applies if the relevant proceedings commenced on or after 6th April 2005 and the scheme has not begun to be wound up before that date.
(5) In paragraph (4) "the relevant proceedings" means the proceedings for the dissolution or annulment of marriage in connection with which the order or provision mentioned in Article 25(1) of the 1999 Order that resulted in entitlement to the pension credit in question was made.
Amendment of the Pension Sharing (Pension Credit Benefit) Regulations
18.
- (1) The Pension Sharing (Pension Credit Benefit) Regulations (Northern Ireland) 2000[52] shall be amended in accordance with paragraphs (2) to (11).
(2) In regulation 1(2) for the definition of "the Minimum Funding Requirement Regulations" there shall be substituted the following definition -
(3) In regulation 15(4) (further conditions on which liability may be discharged) for sub-paragraph (b) there shall be substituted the following sub-paragraph -
(4) In regulation 24(3)(b)(iv) (manner of calculation and verification of cash equivalents) for "the liabilities mentioned in Article 73(3)(a), (c)(i) and (d)" there shall be substituted "liabilities for the benefits in respect of which the cash equivalent is being calculated".
(5) In regulation 27 (increases and reductions of cash equivalents before a statement of entitlement has been sent to the eligible member) for paragraphs (4) to (4B)[53] there shall be substituted the following paragraphs -
(4B) If the GN 11 insufficiency conditions are met then, subject to paragraph (4D), the trustees or managers may reduce any part of the eligible member's cash equivalent that is payable in respect of such a category of liabilities as are mentioned in paragraph (4A)(b) by a percentage not exceeding the GN 11 deficiency percentage.
(4C) The GN 11 deficiency percentage for any such part of an eligible member's cash equivalent is the percentage by which the actuary's last relevant GN 11 report shows that the assets were insufficient to pay that category of liabilities.
(4D) The total reduction made in an eligible member's cash equivalent under paragraph (4) must not reduce the member's cash equivalent below the MFR basis minimum for the member.
(4E) Subject to paragraph (4F), for the purposes of this regulation, the MFR basis minimum for the eligible member is the minimum amount required in accordance with regulation 24(3)(b)(iv) to pay in full the liabilities for the benefits in respect of which the member's cash equivalent is being calculated.
(4F) If the GN 11 insufficiency conditions and the MFR insufficiency conditions are both met, the MFR basis minimum for the eligible member for the purposes of paragraph (4D) may be reduced by the trustees or managers in accordance with paragraph (4H).
(4G) The MFR insufficiency conditions are that the last relevant MFR valuation statement (see paragraph (4K)) shows that at the effective date of the valuation -
(4H) The reduction that may be made under paragraph (4F) is that any part of the MFR basis minimum for the eligible member that relates to that category of liabilities may be reduced by a percentage not exceeding the MFR deficiency percentage.
(4I) The MFR deficiency percentage for any such part of the MFR basis minimum for the eligible member is the percentage by which the last relevant MFR valuation statement shows that the assets were insufficient to pay that category of liabilities.
(4J) The references in this regulation to the actuary's last relevant GN 11 report are to his last report before the reference date in accordance with "Retirement Benefit Schemes - Transfer Values (GN 11)" published by the Faculty of Actuaries and the Institute of Actuaries and current at the reference date.
(4K) The references in this regulation to the last relevant MFR valuation statement are to the statement made by the actuary in accordance with Schedule 1 to the Minimum Funding Requirement Regulations (minimum funding valuation statements) and contained in the last actuarial valuation under Article 57 (valuation and certification of assets and liabilities) before the reference date.
(4L) If the last relevant MFR valuation statement refers to an order for applying assets determined under Article 73 that is an order modified by regulations made under that Article, then the reduction under paragraph (4F) is to be made by reference to the order as so modified.
(4M) In paragraphs (4J) and (4K) "the reference date" means the date by reference to which the cash equivalent is determined.".
(6) In regulation 27(5) for "paragraph (4)", "the reference" and "a reference" there shall be substituted "paragraphs (4), (4A) and (4G)", "the references" and "references" respectively.
(7) In regulation 27(9) for "Article 73 and the Winding Up Regulations" there shall be substituted "the winding up provisions and regulations made under those provisions".
(8) In regulation 27(10) for "under the Winding Up Regulations, Article 73 applies" there shall be substituted "regulations made under Article 73B(4)(b)(i) by virtue of Article 73B(5), the winding up provisions apply".
(9) For regulation 27(13) there shall be substituted the following paragraph -
(10) In regulation 28(3) (increases and reductions of cash equivalents once the statement of entitlement has been sent to the eligible member) for "Articles 73 and 74 and the Winding Up Regulations" there shall be substituted "the winding up provisions (as defined in regulation 27(13)) and regulations made under those provisions".
(11) In regulation 28(4) for "the Winding Up Regulations, Article 73 applies" there shall be substituted "regulations made under Article 73B(4)(b)(i) by virtue of Article 73B(5), the winding up provisions (as so defined) apply".
(12) This regulation only applies if the relevant proceedings commenced on or after 6th April 2005 and the scheme has not begun to be wound up before that date.
(13) In paragraph (12) "the relevant proceedings" means the proceedings for the dissolution or annulment of marriage in connection with which the order or provision mentioned in Article 25(1) of the 1999 Order that resulted in entitlement to the pension credit in question was made.
Sealed with the Official Seal of the Department for Social Development on
25th March 2005.
L.S.
John O'Neill
A senior officer of the Department for Social Development
(1A) See Article 121(4) to (8) for the time when a scheme begins to wind up in any other case.".
2.
In regulation 3 (modification of Article 73) -
3.
In regulation 5(1) (modification of schemes to fix time for settling priority of liabilities on winding up), as it applies to schemes beginning to be wound up on or after 6th April 2005 -
4.
In regulation 7(8) (requirements applicable to notices of discharge under regulation 6) in the definition of "scheme administrator" for "section 630(1) of the Taxes Act 1988" there shall be substituted "section 270 of the Finance Act 2004".
5.
In regulation 11(1)(b) (records and information), as it applies to schemes beginning to be wound up on or after 6th April 2005, for "Article 73(3)" there shall be substituted "Article 73(4)".
6.
In regulation 12 (winding up of sectionalised schemes, etc.), as it applies to schemes beginning to be wound up on or after 6th April 2005, for paragraph (1)[57] there shall be substituted the following paragraph -
Articles 73 to 74 apply as if each section of the scheme were a separate scheme.
(1A) Condition A is that contributions payable to the scheme by an employer, or by a member in employment under that employer, are allocated to that employer's section (or, if more than one section applies to the employer, to the section which is appropriate in respect of the employment in question).
(1B) Condition B is that a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section.
(1C) In their application to a scheme -
Articles 73 to 74 apply as if the section in relation to which those conditions have ceased to be met were a separate scheme.
(1D) For the purposes of paragraphs (1) to (1C), any provisions of the scheme by virtue of which contributions or transfers of assets may be made to make provision for death benefits are disregarded.
(1E) Where paragraph (1) or (1C) applies and, by virtue of any provisions of the scheme, contributions or transfers of assets to make provision for death benefits are made to a section ("the death benefits section") the assets of which may only be applied for the provision of death benefits, the death benefits section is also to be treated as a separate scheme.
(1F) For the purpose of this regulation, any provisions of a scheme by virtue of which assets attributable to one section may on the winding up of the scheme or a section be used for the purposes of another section are disregarded.".
7.
After regulation 12 there shall be inserted the following regulation -
(2) Where this regulation applies, Articles 73 to 74 and the provisions of these Regulations (apart from this regulation) apply as if the guaranteed part of the scheme and the other part of the scheme were separate schemes.
(3) In this regulation -
Schemes covering United Kingdom and foreign employment
12B.
- (1) Paragraph (2) applies where a scheme which applies to members in employment in the United Kingdom and members in employment outside the United Kingdom is divided into two or more sections and the provisions of the scheme are such that -
(2) If this paragraph applies Articles 73 to 74 and the provisions of these Regulations (apart from this regulation) apply as if each section of the scheme were a separate scheme.
(3) Paragraph (4) applies where -
(4) If this paragraph applies Articles 73 to 74 and the provisions of these Regulations (apart from this regulation) apply as if the approved and unapproved parts of the scheme were separate schemes.
(5) In their application to a scheme -
Articles 73 to 74 apply and the provisions of these Regulations (apart from this regulation) apply as if any section in relation to which those conditions have ceased to be met were a separate scheme.
(6) Before 6th April 2006 paragraph (3) applies as if for sub-paragraph (c) there were substituted the following paragraph -
(c) paragraph (5A)[60] shall be omitted.
(3) In regulation 72(2)[61] (transitional requirements as to sufficiency of resources of salary related schemes) for the words from "sub-paragraphs" to the end there shall be substituted "Article 73(4) of the Order (liabilities towards which scheme assets must be applied first on winding up)".
Amendment of the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations
9.
- (1) The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations (Northern Ireland) 1996[62] shall be amended in accordance with sub-paragraphs (2) and (3).
(2) In regulation 7(1)(a) (determination and valuation of liabilities) for "Article 73(3)" there shall be substituted "Article 73(4)".
(3) In Schedule 1[63] (minimum funding valuation statements) for "Article 73(3)", in each place where it occurs, there shall be substituted "Article 73(4)".
Amendment of the Occupational Pension Schemes (Disclosure of Information) Regulations
10.
In regulation 5(15) of the Occupational Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 1997[64] (information to be made available to individuals) for the words from "determined" to the end there shall be substituted
Amendment of the Occupational Pension Schemes (Payments to Employers) Regulations
11.
In regulation 15(3) of the Occupational Pension Schemes (Payments to Employers) Regulations (Northern Ireland) 1997[65] (revocations and savings) for "any regulations made under Article 73" there shall be substituted "the Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996 (see regulation 2 of those Regulations, as amended by paragraph 1 of Schedule 1 to, the Occupational Pension Schemes (Winding Up, etc.) Regulations (Northern Ireland) 2005, and also regulation 12 of those Regulations of 2005).".
Amendment of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations
12.
In regulation 2(3) of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997[66] (commutation of a pension under an occupational pension scheme) for "regulation 2 of the Occupational Pension Schemes (Winding Up) Regulations (Northern Ireland) 1996 (commencement of winding up) apply" there shall be substituted "Article 121(4) and (5) applies (but subject to Article 121(6) and (8))".
[2] S.I. 1995/3213 (N.I. 22); Article 73 is substituted and Articles 73A and 73B are inserted by Article 247 of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)); Article 74 was amended by paragraph 45 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 and Article 60 of S.I. 2002/1555 and is amended by Article 247(2) of the Pensions (Northern Ireland) Order 2005 and Article 121 was amended by paragraph 14 of Schedule 2 and paragraph 50 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 and section 45(2) of, and paragraph 5(3) of Schedule 5 to, the Child Support, Pensions and Social Security (Northern Ireland) Act 2000back
[3] S.I. 1999/3147 (N.I. 11)back
[4] See Article 8(b) of S.R. 1999 No. 481back
[5] S.I. 2005/255 (N.I. 1)back
[6] Section 590 was amended by paragraph 18 of Schedule 3 to the Finance Act 1988 (c. 39), paragraph 3 of Schedule 6 to the Finance Act 1989 (c. 26); (see also paragraph 18(2) and (3) of that Schedule), sections 34 and 36(2) and (3) of the Finance Act 1991 (c. 31) and paragraph 2 of Schedule 10 to the Finance Act 1999 (c. 16)back
[7] Section 591 was amended by paragraph 6 of Schedule 13 to the Finance Act 1988; (see also paragraph 1 of that Schedule), section 107 of the Finance Act 1994 (c. 9), section 59(2) of the Finance Act 1995 (c. 4); (see also section 60(1) of that Act) and paragraph 3 of Schedule 10 to the Finance Act 1999; (see also paragraph 18(1) and (3) of that Schedule)back
[8] 2004 c. 12; at the time of coming into operation of these regulations section 153 has not yet been brought into forceback
[9] S.R. 1996 No. 621; relevant amending regulations are S.R. 1997 No. 160, S.R. 1999 No. 486, S.R. 2002 No. 64, S.R. 2004 No. 187 and S.R. 2005 No. 20back
[11] S.I. 1972/1073 (N.I. 10)back
[15] Section 615(6) was amended by paragraph 11 of Schedule 10 to the Finance Act 1999 and has effect in relation to trust-based occupational pension schemes established in respect of persons wholly employed in a trade or undertaking outside of the United Kingdomback
[16] Article 23 is substituted by Article 32(3) of the Pensions (Northern Ireland) Order 2005back
[18] The definition of "relevant benefits" was amended by paragraph 10(1) of Schedule 10 to the Finance Act 1999back
[19] Section 611A was inserted by paragraph 15 of Schedule 6 to the Finance Act 1989 and amended by paragraph 5 of Schedule 5 to the Finance Act 1999back
[20] Paragraphs 5(4A), 15(5A) and 19(5A) are inserted by regulation 23(2) of S.R. 2005 No. 149back
[23] Paragraph 23A is inserted by regulation 3 of S.R. 2005 No. 137back
[24] Paragraph 31A is inserted by regulation 3(4) of S.R. 2005 No. 84back
[25] Sub-paragraph (6B) is inserted by regulation 20(3) of S.R. 2005 No. 149back
[26] Chapter 5 is inserted by Article 241 of the Pensions (Northern Ireland) Order 2005back
[27] Article 73A is inserted by Article 247(1) of the Pensions (Northern Ireland) Order 2005back
[28] Article 73B is inserted by Article 247(1) of the Pensions (Northern Ireland) Order 2005back
[29] Regulation 4 was amended by regulation 4(2) of S.R. 2002 No. 64 and regulation 2(2) of S.R. 2005 No. 20back
[30] Article 74(3)(c) was amended by S.I. 2002/1555back
[31] S.R. 1996 No. 570; regulation 7 was amended by paragraph 7(3) of the Schedule to S.R. 1997 No. 160, regulation 3(4) of S.R. 2000 No. 335 and regulation 2(3) of S.R. 2002 No. 64 and regulation 8(2) was amended by regulation 3(5) of S.R. 2000 No. 335back
[32] The publication GN 19 may be obtained from the Institute of Actuaries, Staple Inn Hall, High Holborn, London WC1V 7QJ and from the Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PPback
[33] Article 38 was amended by paragraph 39 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999back
[34] Article 74(2) and (4) is amended by Article 247(2)(b) of, and Schedule 11 to, the Pensions (Northern Ireland) Order 2005back
[35] Sub-paragraph (e) is inserted by Article 247(2)(c) of the Pensions (Northern Ireland) Order 2005back
[36] S.R. 1996 No. 493; regulation 19 was substituted by regulation 2(7) of S.R. 2002 No. 109, regulation 20 was amended by regulation 2(3) of S.R. 2000 No. 336 and regulation 2(8) of S.R. 2002 No. 109 and regulation 60 was amended by paragraph 5(12) of the Schedule to S.R. 1997 No. 160 and regulation 2(12) of S.R. 2002 No. 109back
[37] S.R. 1997 No. 153; regulation 2 was amended by regulation 8 of S.R. 2002 No. 109back
[40] Regulation 12 is amended and regulations 12A and 12B are inserted respectively by paragraphs 6 and 7 of the Schedule to these regulationsback
[41] S.R. 1996 No. 619; relevant amending regulations are S.R. 2003 No. 337back
[42] Regulation 7(3)(b) was amended by paragraph 11(4) of the Schedule to S.R. 1997 No. 160back
[43] Paragraphs (4) to (4B) were substituted for paragraph (4) by regulation 2(3) of S.R. 2003 No. 337back
[44] The publication "Retirement Benefit Schemes - Transfer Values (GN 11)" may be obtained from the Institute of Actuaries, Staple Inn Hall, High Holborn, London WC1V 7QJ and from the Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PPback
[45] S.R. 1996 No. 570; Schedule 1 was amended by regulation 2(3) of S.R. 2004 No. 481back
[46] Section 89A was inserted by Article 149 of the Pensions (Northern Ireland) Order 1995 and amended by paragraph 23 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999back
[47] S.R. 2000 No. 144; relevant amending regulations are S.R. 2000 No. 335 and S.R. 2003 No. 337back
[48] Paragraphs (3) to (3B) were substituted for paragraph (3) by regulation 4(3) of S.R. 2003 No. 337back
[49] Paragraph (5) was substituted by regulation 10(4) of S.R. 2000 No. 335back
[50] S.R. 2000 No. 145; relevant amending regulations are S.R. 2003 No. 337back
[51] Paragraphs (2) to (2B) were substituted for paragraph (2) by regulation 5(3) of S.R. 2003 No. 337back
[52] S.R. 2000 No. 146; relevant amending regulations are S.R. 2003 No. 337back
[53] Paragraphs (4) to (4B) were substituted for paragraph (4) by regulation 6(3) of S.R. 2003 No. 337back
[54] Sub-paragraph (b) was substituted by regulation 3(b) of S.R. 2004 No. 187 in relation to certain schemesback
[55] Paragraph (1)(c) was amended and paragraph (7) substituted by regulation 9 of S.R. 1999 No. 486back
[57] Paragraph (1) was substituted by paragraph 12 of the Schedule to S.R. 1997 No. 160back
[58] S.R. 1996 No. 493; relevant amending regulations are S.R. 1997 No. 160back
[59] Sub-paragraphs (c) and (ca) were substituted for sub-paragraph (c) by paragraph 5(9)(a) of the Schedule to S.R. 1997 No. 160back
[60] Paragraph (5A) was inserted by paragraph 5(9)(b) of the Schedule to S.R. 1997 No. 160back
[61] Paragraph (2) was substituted by paragraph 5(13)(a) of the Schedule to S.R. 1997 No. 160back
[62] S.R. 1996 No. 570; relevant amending regulations are S.R. 2004 No. 481back
[63] Schedule 1 was amended by regulation 2(3) of S.R. 2004 No. 481back
[64] S.R. 1997 No. 98; paragraph (15) was added by paragraph 19(4)(e) of the Schedule to S.R. 1997 No. 160back
[65] S.R. 1997 No. 96, to which there are amendments not relevant to these regulationsback
[66] S.R. 1997 No. 153, to which there are amendments not relevant to these regulationsback